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citation codes
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  • S. 79 (c) of the Electricity (Supply) Act, 1948.(3) Section 13B of the Industrial Employment (Standing Orders) Act, 1946,
  • S. 13B of the Industrial Employment (Standing Orders) Act, and by S. 79 (c) of the Electricity (Supply) Act, 1948,
  • S. 13B of the Standing Orders Act and S. 79 (c) of the Electricity (Supply) Act,
  • INDUSTRIAL EMPLOYMENT STANDING ORDERS ACT
  • S. 5 of the Industrial Employment (Standing Orders) Act.
  • S. 79 (c) of the Electricity (Supply) Act (Act 54 of 1948),
  • S. 79 (c) of the Electricity (Supply) Act, 1948,
  • S. 79 (c) of the Electricity (Supply) Act,
  • ELECTRICITY SUPPLY ACT
  • Orders) Act, 1946,
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Citation Codes
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citation codes
Case Number
Advocates
Judges
Acts
  • S. 79 (c) of the Electricity (Supply) Act, 1948.(3) Section 13B of the Industrial Employment (Standing Orders) Act, 1946,
  • S. 13B of the Industrial Employment (Standing Orders) Act, and by S. 79 (c) of the Electricity (Supply) Act, 1948,
  • S. 13B of the Standing Orders Act and S. 79 (c) of the Electricity (Supply) Act,
  • INDUSTRIAL EMPLOYMENT STANDING ORDERS ACT
  • S. 5 of the Industrial Employment (Standing Orders) Act.
  • S. 79 (c) of the Electricity (Supply) Act (Act 54 of 1948),
  • S. 79 (c) of the Electricity (Supply) Act, 1948,
  • S. 79 (c) of the Electricity (Supply) Act,
  • ELECTRICITY SUPPLY ACT
  • Orders) Act, 1946,
Smart Summary

Structured Summary of the Opinion (H.N. Seth, J.)

Factual and Procedural Background

These petitions under Article 226 challenge a State Government notification and consequential notices of retirement affecting workmen of the State Electricity Board (Uttar Pradesh) employed in electricity undertakings at Allahabad, Kanpur, Varanasi, Bareilly, Etawah, Mathura and Jhansi.

Historically, the undertakings were originally owned and controlled by private companies (the "erstwhile licencees") which had framed standing orders regulating employees' terms and conditions. Some undertakings were taken over by the State Government and/or the State Electricity Board at various times; Kanpur was transferred after a State takeover, while the others were directly taken over by the Board (some in 1964–65).

On 28 May 1970 the State Government, invoking S.13B of the Industrial Employment (Standing Orders) Act and S.79(c) of the Electricity (Supply) Act, 1948, notified regulations prescribing fifty-eight years as the age of superannuation for employees of the State Electricity Board. Acting on those regulations, the Board issued notices of retirement to the petitioners on attaining that age. The petitioners challenged the validity of the regulations by approaching this Court under Article 226.

Legal Issues Presented

  1. Whether regulations framed by the State Electricity Board under S.79(c) of the Electricity (Supply) Act and notified by the State under S.13B of the Industrial Employment (Standing Orders) Act (prescribing retirement at 58 years) are valid and operative against existing standing orders framed by erstwhile licencees.
  2. Whether standing orders framed by the erstwhile licencees continue to be operative after purchase/takeover by the Board, and whether they override regulations notified under S.13B.
  3. Whether the notified regulation prescribing retirement at 58 years applies to employees who were already in service at the time of notification (i.e., whether such application is retrospective or affects vested rights of existing employees).

Arguments of the Parties

Workmen's Arguments

  • The standing orders framed by the erstwhile licencees continued to govern terms and conditions after takeover; where those standing orders did not specify an age of superannuation, employees had a right to continue in service so long as they were physically and mentally fit.
  • Because standing orders existed under the Industrial Employment (Standing Orders) Act, the Board/respondents lacked jurisdiction under S.79(c) of the Electricity (Supply) Act to frame regulations prescribing terms of service (including retirement age) that would override existing standing orders.
  • Where a standing order already specified a retirement age higher than 58, that specific provision should prevail over the Board's regulation.
  • In respect of employees already in service before notification, the petitioners argued they had acquired a vested right to continue until unfit (or until dismissal in accordance with standing orders) and therefore the 58-year rule should not be applied retrospectively to existing employees; instead it should apply only to employees recruited on or after 28 May 1970. Counsel relied on Workmen of Kettlewell Bullen & Co., Ltd. v. Kettlewell Bullen & Co. Ltd. in support of this submission.

State Electricity Board's Arguments

  • The Board contended that under S.13B of the Standing Orders Act and S.79(c) of the Electricity (Supply) Act it had jurisdiction to frame regulations prescribing conditions of service, including age of compulsory retirement, and that once duly notified they would be effective.
  • Implicit in the Board's stance (as accepted by the Supreme Court in its cited decision) was that regulations notified under S.13B can operate notwithstanding that the subject matter could have been covered by standing orders under the Standing Orders Act.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Hari Shankar Jain v. Rural Electrification Division, Etah [1977-I L.L.N 62] (Full Bench) The Full Bench held three propositions: (1) the Industrial Employment (Standing Orders) Act, 1946 applies to Board establishments; (2) standing orders framed by an electrical undertaking do not cease on purchase by the Board or on framing of Board regulations; (3) S.13B applies only to Government industrial establishments (i.e., not to those of the Board). The Full Bench's decision was the subject of appeal; this Court recorded the Full Bench's propositions and acknowledged that the Full Bench held that notifications under S.13B did not affect relevant standing orders.
Uttar Pradesh State Electricity Board v. Hari Shankar Jain, Civil Appeal No. 2199 of 1977 [1978-II L.L.N 514] (Supreme Court) The Supreme Court reversed the Full Bench's third proposition, holding that S.13B could be exercised in respect of industrial establishments owned by the State Electricity Board and that regulations notified under S.13B prevail over Board regulations only if notified; where regulations by the Board have been duly notified under S.13B, those regulations have effect notwithstanding that the subject could be the subject matter of standing orders under the Industrial Employment (Standing Orders) Act. This Court relied on the Supreme Court's observations to conclude that the regulations notified on 28 May 1970 prescribing retirement at 58 would prevail over the standing orders to the extent they deal with that subject, and employees were properly retired at 58 where the regulation was duly notified.
Workmen of Kettlewell Bullen & Co., Ltd. v. Kettlewell Bullen & Co. Ltd. [1964-II L.L.J 149] Cited by petitioners to support the proposition that standing orders fixing retirement did not apply to employees who were already in service before the standing orders, and that prior employees may retain different retirement terms. The Court considered this authority (and its discussion of Guest, Keen William v. P.J. Starling) but held that the principle in Kettlewell Bullen concerning voluntary acceptance of terms and the special treatment of prior employees did not govern statutory regulations: where terms are laid down by statutory regulations (and validly notified), they affect rights irrespective of prior agreement.
Guest, Keen William (Private), Ltd. v. P.J. Starling [A.I.R. 1959 S.C. 1279] Discussed in Kettlewell Bullen as dealing with the effect of standing orders fixing retirement for persons who joined before the date of the standing orders; in that context the Court in Kettlewell treated the standing orders as not applying to prior employees. The present Court noted that the Guest, Keen William decision (as interpreted in Kettlewell) concerned voluntary acceptance and standing orders, and held that those observations do not determine the effect of a statutory regulation notified under S.13B of the Standing Orders Act.

Court's Reasoning and Analysis

The Court's legal analysis proceeded principally by reference to the Full Bench decision in Hari Shankar Jain and the subsequent Supreme Court judgment in Uttar Pradesh State Electricity Board v. Hari Shankar Jain. The following points encapsulate the Court's step-by-step reasoning as explicitly set out in the opinion:

  1. The Court acknowledged the Full Bench's three propositions (that the Standing Orders Act applies to Board establishments; that existing standing orders do not cease by takeover or by Board regulation; and that S.13B applies only to Government establishments). The Full Bench had held that notifications under S.13B did not affect standing orders.
  2. The Supreme Court, however, reversed the Full Bench as to the third proposition, holding that S.13B may be exercised in respect of industrial establishments owned by the State Electricity Board. The Supreme Court observed that where the Board's regulations have been duly notified by the Government under S.13B, those regulations shall have effect notwithstanding that the matter could be the subject of standing orders under the Standing Orders Act.
  3. The Court interpreted the Supreme Court's observations to mean that, although the Standing Orders Act is a special enactment and standing orders generally prevail over Board regulations for matters in the schedule, a regulation of the Board that has been notified under S.13B will prevail over the standing orders on that subject.
  4. The petitioners' narrower argument — that the Supreme Court's observation should be confined to cases where there was a lacuna in the earlier standing orders as to retirement age — was rejected. The Court held that once regulations under S.79(c) are notified by the State under S.13B, standing orders to the extent they deal with the subject become ineffective and the rights of parties are governed by the notified regulation.
  5. The Court examined the petitioners' contention that they had vested rights (i.e., a right to continue in service until unfit) and that the 58-year rule should not apply retrospectively to existing employees. The Court referred to the Supreme Court's decision in the Hari Shankar Jain appeal (wherein employees in prior service were held governed by the notified regulation) and to the Kettlewell Bullen line of authorities. The Court distinguished cases like Kettlewell Bullen and Guest, Keen William as addressing the effect of standing orders and voluntary acceptance by parties, not the effect of statutory regulations. The Court concluded that when terms of service are laid down by statutory regulations, there is no question of voluntary agreement and valid regulations affect rights whether parties like it or not.
  6. As to the factual disputes in the Allahabad matters (allegations that some petitioners were retired before reaching 58), the Court observed that representations alleging incorrect age were said by petitioners to have been made but respondents denied receipt. The Court directed that if fresh representations are made, the Board should consider them on merits and, if satisfied that a petitioner has not reached 58, correct any error. Therefore the Court did not decide those specific factual disputes.

Holding and Implications

Final Ruling: The Court dismissed all the petitions heard and vacated the interim orders previously granted. The parties were directed to bear their own costs.

Implications (direct and as stated in the opinion):

  • The regulations notified by the State on 28 May 1970 prescribing fifty-eight years as the age of superannuation are effective and prevail over prior standing orders to the extent those standing orders concern the same subject, because those regulations were notified under S.13B of the Industrial Employment (Standing Orders) Act.
  • Employees who were in service prior to notification are governed by the notified regulation (i.e., subject to retirement at 58) where the regulation has been validly notified; the Court rejected the submission that existing employees had an acquired vested right to avoid the regulation's applicability.
  • The Court did not lay down any new broad precedent beyond applying the Supreme Court's ruling; it followed the Supreme Court's view that notified regulations under S.13B prevail notwithstanding that the matter falls within the Standing Orders Act.
  • On the factual point of some Allahabad petitioners claiming retirement before 58, the Court did not decide the contested factual issue but directed the Board to consider fresh representations and correct any error if it is established that a petitioner has not attained the age of 58.

Note: This summary is strictly limited to and draws exclusively on the factual statements, arguments, authorities and conclusions set out in the provided opinion. No additional facts or inferences beyond the opinion's text have been introduced.

    Bhai Lal And Another v. Superintending Engineer, Allahabad, And Another

    H.N Seth, J.:— The dispute in these petitions under Art. 226 of the Constitution relates to the age of retirement of the workmen of the State Electricity Board, Uttar Pradesh, working in its various undertakings at Allahabad, Kanpur, Varanasi, Bareilly, Etawah, Mathura and Jhansi.

    2. It is the common case of all the parties that electricity undertakings at various places mentioned above were originally owned and controlled by private companies (hereinafter referred to as the erstwhile licencees) which had framed standing orders regulating the terms and conditions of their respective employees. Whereas, the electricity undertaking at Kanpur owned by Begg Southerland and Company was, after being taken over by the State Government, eventually transferred to the State Electricity Board, electricity undertakings at remaining places, were directly taken over from their respective owners by the State Electricity Board some between the years 1964–65.

    3. Parties are also agreed that the standing orders, framed by the erstwhile licencees, excepting for those at Allahabad and Varanasi, did not prescribe any age of superannuation for their workmen. So far as the electricity undertakings at Varanasi and Allahabad are concerned, there is some dispute between the parties with regard to the prescription of age of superannuation in the standing orders framed by the erstwhile licencees. But as we will presently show, this controversy will not at all be relevant for deciding the petitions filed by the employees of the undertakings at these two places.

    4. On 28 May 1970, the State Government in exercise of powers conferred by S. 13B of the Industrial Employment (Standing Orders) Act, and by S. 79 (c) of the Electricity (Supply) Act, 1948, notified the regulation applicable to the employees of the State Electricity Board throughout the State, prescribing fifty-eight years as the age for their superannuation. Acting on the basis of these regulations, the State Electricity Board issued notices to the petitioners informing them that they were, after attaining the age of fifty-eight years to retire from service with effect from the date mentioned in the notice. The petitioners then came up before this Court and challenged the validity of the regulations notified by the State Government on 28 May 1970.

    5. Learned counsel appearing for the workmen in all these cases submitted that the standing orders which had been framed by the erstwhile licencees prior to the respective undertakings being taken over by the State Electricity Board continued to be operative even after those undertakings had been taken over by the State Electricity Board. Inasmuch as those standing orders did not lay down any age for compulsory retirement of the employees, they emphasized that according to terms and conditions of service applicable to them, the employees had a right to remain in the service of the undertaking till such time as they were physically and mentally fit to perform their duties and that they could not be retired at any fixed age. On the face of already existing standing orders framed under the Industrial Employment (Standing Orders) Act, the respondents did not have any jurisdiction to frame regulations under S. 79 (c) of the Electricity (Supply) Act (Act 54 of 1948), prescribing the terms and conditions of the service of their workmen. The stand taken on behalf of the State Electricity Board, however, is that in view of S. 13B of the Standing Orders Act and S. 79 (c) of the Electricity (Supply) Act, they had ample jurisdiction to frame regulations prescribing the conditions of services of their workmen and to lay down the age for their compulsory retirement.

    6. A similar question came up for consideration before a Full Bench of this Court in the case of Hari Shankar Jain v. Rural Electrification Division, Etah [1977-I L.L.N 62]. The Full Bench laid down the following three propositions in Para. 23 at page 77:

    (1) The Industrial Employment (Standing Orders) Act, 1946, applies to the industrial establishments of the State Electricity Board.

    (2) The standing orders framed in an industrial establishment by an electrical undertaking do not cease to be operative on the purchase of the undertaking by the Board or on framing of the regulations under S. 79 (c) of the Electricity (Supply) Act, 1948.

    (3) Section 13B of the Industrial Employment (Standing Orders) Act, 1946, applies only to the industrial establishments of the Government and to no other establishments.

    and held that the notification under S. 13B of the Industrial Employment (Standing Orders) Act did not in any way affect the relevant standing orders which continued to be applicable to the respective undertakings. As the standing orders framed under the Industrial Employment (Standing Orders) Act, had an overriding effect, the State Electricity Board was not, under S. 79 (c) of the Electricity (Supply) Act, 1948, competent to frame regulations prescribing age limits for its employees and that they could not be retired on attaining the age of fifty-eight years as laid down in those regulations.

    7. Being aggrieved by the aforesaid decision, the State Electricity Board went up in appeal before the Supreme Court which by its judgment, dated 28 August 1978, in Civil Appeal No. 2199 of 1977 [reported in 1978-II L.L.N 514] (Uttar Pradesh State Electricity Board v. Hari Shankar Jain)] upset the view of the Full Bench of this Court in so far as third proposition was concerned. It held that power under S. 13B of the Industrial Employment (Standing Orders) Act could equally be exercised in respect of the industrial establishments now owned by the State Electricity Board and observed thus [in Para. 18 at page 523]:

    “We, therefore hold that the Industrial Employment (Standing Orders) Act is a special law in regard to the matters enumerated in the schedule and the regulations made by the Electricity Board with respect to any of those matters are of no effect unless such regulations are either notified by the Government under S. 13B or certified by the Certifying Officer under S. 5 of the Industrial Employment (Standing Orders) Act. In regard to matters in respect of which regulations made by the Board have not been notified by the Governor or in respect of which no regulations have been made by the Board, the Industrial Employment (Standing Orders) Act shall continue to apply. In the present case the regulations made by the Board with regard to age of superannuation having been duly notified by the Government, the regulations shall have effect notwithstanding the fact that it is a matter which could be the subject matter of standing orders under the Industrial Employment (Standing Orders) Act. The respondents were, therefore, properly retired when they attained the age of fifty-eight years.” (Emphasis supplied.)

    8. These observations in our opinion clearly mean that even though the Industrial Employment (Standing Orders) Act is a special enactment and generally speaking the standing order framed thereunder shall, in regard to the subject matter mentioned in the schedule to the Industrial Employment (Standing Orders) Act, prevail over the regulation framed by the State Electricity Board, but in case the regulations framed by the Board have been notified under S. 13B of the Standing Orders Act, those regulations shall prevail over the standing orders framed under the Standing Orders Act.

    9. Sri K.P Agrawal, learned counsel for the workmen, urged that the aforesaid observation made by the Supreme Court must be confined to cases where there was a lacuna in the standing order, framed by the erstwhile licencee with regard to the age of superannuation of these employees. It was only in such cases where the regulations under S. 79 (c) of the Electricity (Supply) Act, if notified under S. 13B of the Industrial Employment (Standing Orders) Act, were to be effective. As it has been held that the Industrial Employment (Standing Orders) Act is a special Act which prevails over the Electricity (Supply) Act, no regulation framed under the latter Act can have the effect of overriding a specific standing order dealing with a particular subject. Learned counsel advanced this argument with a view to canvass that in some cases the standing orders framed by the erstwhile licencees do contain a specific provision laying down an age higher than fifty-eight years for compulsory retirement of their employees. However, in view of the clear pronouncement by the Supreme Court that the regulation framed under S. 79 (c) of the Electricity (Supply) Act, if notified under S. 13B of the Industrial Employment (Standing Orders) Act, shall be effective notwithstanding the fact that the matter could be the subject matter of the standing orders under the Industrial Employment (Standing Orders) Act, it is not possible to accept this argument. Once the regulations framed under S. 79 (c) of the Electricity (Supply) Act, 1948, have been notified by the State Government under S. 13B of the Industrial Employment (Standing Orders) Act, the standing orders framed by the erstwhile licencee to the extent they concerned the subject dealt with by the regulations became ineffective and inoperative and that in respect of such matter, the right of the parties would be governed only by the regulation so notified. In the circumstances even if it be a fact that the standing orders, framed by erstwhile licencee contained a clause specifying an age higher than fifty-eight years, as age of superannuation for its employee, the employee would nonetheless, as provided in the notified regulation, be superannuated at the age of fifty-eight years.

    10. Sri K.P Agrawal, learned counsel appearing for the workmen, next pressed the grounds which he has been permitted to add today, in substance his contention is that prior to the framing of the impugned regulation, the petitioners had already acquired a vested right to continue in service so long as they were physically and mentally fit to carry on their duties. Their services could not be determined except in accordance with standing orders which contemplated determination of their employment either for some misconduct and in the manner laid down therein or by giving them a particular notice. Accordingly, the rule of retirement contained in the regulation framed by the Board and notified on 28 May 1970, should not be applied retrospectively to the employees who were already in service on that date, instead the rule providing for the age of retirement as fifty-eight years, should be applied only to the employees who have been recruited in the service of the Board on or after 28 May 1970. In this connexion, he placed reliance on a case decided by the Supreme Court in the case of Workmen of Kettlewell Bullen & Co., Ltd. v. Kettlewell Bullen & Co., Ltd. [1964-II L.L.J 149].

    11. In our opinion it is not possible to accept the submission, in Hari Shankar Jain case [1977-I L.L.N 62] (vide supra), in which the State Electricity Board went up in appeal before the Supreme Court Civil Appeal No. 2199 of 1977, decided on 28 August 1978, reported in 1978-II L.L.N 514, also the controversy was with regard to the age of superannuation of the employee who had been in the service of the erstwhile licencees from before framing of the impugned regulations. The Supreme Court ruled that such employees were governed by the regulation and would retire on attaining the age of fifty-eight years. However, in the case cited by the learned counsel for the petitioner the Supreme Court discussed the impact of its decision in Guest, Keen William (Private), Ltd. v. P.J Starling [A.I.R 1959 S.C 1279], and observed that in that case the Court had to consider the impact of certain standing orders, fixing the age of superannuation at fifty-five years of persons who had joined the company's service before the date of standing orders. It held that the age of retirement as fixed by the standing orders did not apply to the prior employees and thereafter it proceeding to fix the age of retirement of the employees who had been in service prior to the enforcement of the standing orders as sixty years. The Supreme Court went on to observe that the retirement age as fifty-five years fixed by the standing orders, was not to be applied to the existing employees till it was shown that they had agreed to that age of retirement. In our opinion, the observations in this regard made by the Supreme Court merely meant that where service condition had been voluntarily agreed upon between the parties, the same could not be altered unilaterally by framing the standing orders and in such cases the standing orders should be applied to the existing employees either if the standing orders expressly said so or that the conditions mentioned in such standing orders had been voluntarily accepted by the employees. This decision, in our opinion, has no bearing in interpreting statutory regulation laying down the terms and conditions of service of an employee. Whenever, the terms and conditions of the service are laid down by statutory regulations, no question of a party voluntarily agreeing to it arises. If the regulations so framed are valid, they would affect the rights of a party, whether it likes it or not. The regulation framed in this case, on the face of it, applies to all employees of the Board whether they had been in service from before or had been recruited subsequently. In this view of the matter, it is not possible to accept the argument either that the regulations are being applied retrospectively or that they are being applied to such persons who are not intended by the regulation making body to be covered by these regulations.

    12. In the group of writ petitions which have been heard by us today, there are four writ petitions, viz.: Nos. 1979 of 1976, 2277 of 1978, 505 of 1977 and 2010 of 1977, wherein certain workmen of the electricity Supply Undertaking at Allahabad, have claimed that they are being compulsorily retired even before reaching the age of fifty-eight years, and that the notice issued to them stating that they stand superannuated is accordingly invalid. Learned counsel appearing for the petitioners urged that in some of these cases the petitioners made representations to the authorities of the State Electricity Board bringing the fact that they had not reached the age of fifty-eight years to their notice but those representations have not been considered by the authorities so far. Learned counsel for the respondents stated that as such representations were never received by them, no question of deciding them arose. However, in case the petitioners in all these cases made fresh representations, the authorities would consider the same on merits afresh and if ultimately they get satisfied that the petitioners or any of them have in fact not reached the age of fifty-eight years, they will have no hesitation in correcting the error. In these circumstances, it is not necessary for us to go into this controversy with regard to the real age of these petitioners.

    13. In the result all these petitions are dismissed, the interim orders passed in these cases are vacated. In these circumstances, we direct the parties to bear their own costs.

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    Comments

    Bhai Lal And Another v. Superintending Engineer, Allahabad, And Another
    (Sep 11, 1978)